£1m-plus pay-off for Amey boss

CONTROVERSIAL Amey boss Brian Staples bowed to the inevitable today as he announced he will leave the crisis-stricken public sector contractor at the end of February. The departure of Staples, no stranger to fat-cat furores, is likely to spark a huge row as he will probably leave with a pay-off of more than £1.1m.

Shareholders have seen their investment in the company crash to 6.5% of its value 12 months ago.

In a brief statement to the Stock Exchange - which follows the company's second profits warning in a month, issued on Monday - the company said Staples would leave at the end of February 'upon completion of certain specific projects'. That is understood to include the sale of Amey's equity stakes in various Private Finance Initiative schemes to Laing Investments.

Amey's shares have collapsed from a peak of 413p in 2002 to trade today at 27p. The decline was first triggered by the emergence of a £70m accounting black hole in the company's accounts. The company has had to sell its potentially highly-lucrative stake in the part-privatisation of London Underground.

According to Amey's accounts, Staples, 56, is due more than £1.1m in pay, pension entitlements and deferred bonuses.

Five years ago, he took a £750,000 pay-off from United Utilities amid a tabloid scandal about his affair with his boss's secretary.